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Consider the following statements in the context of Production Linked Incentive Scheme:
It aims to invite foreign investors to set up their manufacturing units in India.
It promotes the local manufacturers to expand their units and generate employment.
It provides cash subsidies to companies as a percentage of incremental sales.
Which of the statements given above are correct?
- a)2 and 3 only
- b)1 and 3 only
- c)1 and 2 only
- d)1, 2 and 3
Correct answer is option 'D'. Can you explain this answer?
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Consider the following statements in the context of Production Linked...
Production Linked Incentive Scheme
The Production Linked Incentive (PLI) Scheme is a government initiative aimed at boosting manufacturing in India. It provides financial incentives to both foreign and local manufacturers to promote domestic production and create employment opportunities. Let's analyze each statement in detail:
1. It aims to invite foreign investors to set up their manufacturing units in India.
This statement is correct. One of the objectives of the PLI Scheme is to attract foreign investors to establish their manufacturing units in India. By offering financial incentives, the government aims to make India an attractive destination for foreign direct investment (FDI) in the manufacturing sector. This will not only bring in advanced technology and know-how but also contribute to job creation and economic growth.
2. It promotes the local manufacturers to expand their units and generate employment.
This statement is also correct. The PLI Scheme aims to encourage local manufacturers to expand their production units. By providing incentives based on incremental sales, the scheme incentivizes manufacturers to increase their production and sales volumes. This, in turn, leads to the creation of more job opportunities within the country.
3. It provides cash subsidies to companies as a percentage of incremental sales.
This statement is correct as well. Under the PLI Scheme, eligible companies receive cash subsidies as a percentage of their incremental sales. The incentives are provided to promote production and sales growth, encouraging businesses to invest in expanding their manufacturing capacities. The subsidies act as a financial boost and help offset the costs incurred in scaling up production.
Therefore, all three statements are correct. The PLI Scheme aims to attract foreign investors, promote local manufacturing, and provide cash subsidies based on incremental sales. By implementing this scheme, the government aims to boost domestic manufacturing, increase employment opportunities, and enhance India's position as a global manufacturing hub.
The Production Linked Incentive (PLI) Scheme is a government initiative aimed at boosting manufacturing in India. It provides financial incentives to both foreign and local manufacturers to promote domestic production and create employment opportunities. Let's analyze each statement in detail:
1. It aims to invite foreign investors to set up their manufacturing units in India.
This statement is correct. One of the objectives of the PLI Scheme is to attract foreign investors to establish their manufacturing units in India. By offering financial incentives, the government aims to make India an attractive destination for foreign direct investment (FDI) in the manufacturing sector. This will not only bring in advanced technology and know-how but also contribute to job creation and economic growth.
2. It promotes the local manufacturers to expand their units and generate employment.
This statement is also correct. The PLI Scheme aims to encourage local manufacturers to expand their production units. By providing incentives based on incremental sales, the scheme incentivizes manufacturers to increase their production and sales volumes. This, in turn, leads to the creation of more job opportunities within the country.
3. It provides cash subsidies to companies as a percentage of incremental sales.
This statement is correct as well. Under the PLI Scheme, eligible companies receive cash subsidies as a percentage of their incremental sales. The incentives are provided to promote production and sales growth, encouraging businesses to invest in expanding their manufacturing capacities. The subsidies act as a financial boost and help offset the costs incurred in scaling up production.
Therefore, all three statements are correct. The PLI Scheme aims to attract foreign investors, promote local manufacturing, and provide cash subsidies based on incremental sales. By implementing this scheme, the government aims to boost domestic manufacturing, increase employment opportunities, and enhance India's position as a global manufacturing hub.
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Consider the following statements in the context of Production Linked...
The PLI Scheme was introduced as a part of the National Policy on Electronics by the IT Ministry to give incentives of 4-6% to electronic companies, manufacturing electronic components like mobile phones, transistors, diodes, etc. This scheme was introduced in line with India's Atmanirbhar Bharat campaign.
- The scheme invites foreign companies to set up units in India. So, statement (1) is correct.
- It also aims to encourage local companies to set up or expand existing manufacturing units and generate more employment and cut down the country's reliance on imports from other countries. So, statement (2) is correct.
- Production Linked Incentive or PLI scheme is a scheme that aims to give companies incentives on incremental sales from products manufactured in domestic units. Under the PLI scheme, cash subsidies will be provided to companies as a percentage of incremental sales from the base year. The base year is the year when the scheme comes into effect. The incentive will depend on the 'disadvantage' faced by each sector in domestic manufacturing and will vary from sector to sector. So, statement (3) is correct.
Therefore, the correct answer is d.
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Consider the following statements in the context of Production Linked Incentive Scheme: It aims to invite foreign investors to set up their manufacturing units in India. It promotes the local manufacturers to expand their units and generate employment. It provides cash subsidies to companies as a percentage of incremental sales. Which of the statements given above are correct?a)2 and 3 onlyb)1 and 3 onlyc)1 and 2 onlyd)1, 2 and 3Correct answer is option 'D'. Can you explain this answer?
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Consider the following statements in the context of Production Linked Incentive Scheme: It aims to invite foreign investors to set up their manufacturing units in India. It promotes the local manufacturers to expand their units and generate employment. It provides cash subsidies to companies as a percentage of incremental sales. Which of the statements given above are correct?a)2 and 3 onlyb)1 and 3 onlyc)1 and 2 onlyd)1, 2 and 3Correct answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements in the context of Production Linked Incentive Scheme: It aims to invite foreign investors to set up their manufacturing units in India. It promotes the local manufacturers to expand their units and generate employment. It provides cash subsidies to companies as a percentage of incremental sales. Which of the statements given above are correct?a)2 and 3 onlyb)1 and 3 onlyc)1 and 2 onlyd)1, 2 and 3Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements in the context of Production Linked Incentive Scheme: It aims to invite foreign investors to set up their manufacturing units in India. It promotes the local manufacturers to expand their units and generate employment. It provides cash subsidies to companies as a percentage of incremental sales. Which of the statements given above are correct?a)2 and 3 onlyb)1 and 3 onlyc)1 and 2 onlyd)1, 2 and 3Correct answer is option 'D'. Can you explain this answer?.
Consider the following statements in the context of Production Linked Incentive Scheme: It aims to invite foreign investors to set up their manufacturing units in India. It promotes the local manufacturers to expand their units and generate employment. It provides cash subsidies to companies as a percentage of incremental sales. Which of the statements given above are correct?a)2 and 3 onlyb)1 and 3 onlyc)1 and 2 onlyd)1, 2 and 3Correct answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements in the context of Production Linked Incentive Scheme: It aims to invite foreign investors to set up their manufacturing units in India. It promotes the local manufacturers to expand their units and generate employment. It provides cash subsidies to companies as a percentage of incremental sales. Which of the statements given above are correct?a)2 and 3 onlyb)1 and 3 onlyc)1 and 2 onlyd)1, 2 and 3Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements in the context of Production Linked Incentive Scheme: It aims to invite foreign investors to set up their manufacturing units in India. It promotes the local manufacturers to expand their units and generate employment. It provides cash subsidies to companies as a percentage of incremental sales. Which of the statements given above are correct?a)2 and 3 onlyb)1 and 3 onlyc)1 and 2 onlyd)1, 2 and 3Correct answer is option 'D'. Can you explain this answer?.
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